GENEVA - Swiss socialists want to hold a referendum on the government's 3.1 billion franc (2.5 billion euro) purchase of a new fighter jet fleet if the deal affects spending elsewhere, it was reported Dec. 3.

The Federal Council revealed on Nov. 30 its proposal to buy 22 Swedish-made Gripen planes to replace its aging F5 fighters.

Socialists fear the deal will mean a rise in military spending that could translate into budget restrictions in other departments, notably education, transport and agriculture.

Meeting in Lucerne on Dec. 3, party members unanimously passed are solution on the matter after a document outlining the group's position was approved in October, ATS news agency reported.

The party rejects the prospect of a spending rise all the more because there was no public vote on the plane deal, described as a "scandal" by National Council (parliament) member Eric Voruz.

It will launch a referendum if parliament seeks a legal base to justify budgetary restrictions or requests a rise in military spending to cover the acquisition.

If such a referendum does not halt the deal the, socialists will call for a moratorium on the purchase until 2025.

The Gripen deal will be put to parliament as part of the government's 2012 arms program. Parliamentary decisions can be put to a public vote in Switzerland if a sufficient number of votes are collected.

Contracts :
Dec 1/11 ,
JAS-39 Gripen Picked. Switzerland announces their choice â€“ and itâ€™s Saabâ€™s JAS-39 Gripen. Swiss Defence Minister Ueli Maurer estimates the cost of the envisaged deal at up to CHF 3.1 billion (currently $3.5 billion, probably more by 2014), for 22 planes. The DDPS explicitly stated that Gripen also won because it offered lower maintenance costs that made it affordable over the medium and long term. If the contract goes through, Switzerland will join Sweden, the Czech Republic, Hungary, South Africa, and Thailand as Gripen operators.

Dassault wasnâ€™t very happy, though they did concede that the Gripen beat them on price:

â€œThe RAFALEâ€™s capacities would enable the Swiss Confederation to meet its operational requirements with a smaller number of aircraft [emphasis DIDâ€™s] at an equivalent or lower cost, as was demonstrated during the assessmentsâ€¦. The â€œSwiss-tailoredâ€ GRIPEN only exists on paper. Its technical development and production risk significantly increasing the financial efforts required of the Swiss Authorities to accomplish the countryâ€™s fighter aircraft program. RAFALE INTERNATIONAL extends its sincere thanks the 250 Swiss companies that took part in its industrial partnership project in the 26 cantons of the Swiss Confederation.â€

The next step is for the DDPS and Saab to negotiate a draft contract, including details of the required matching value (100%) industrial offsets program in Switzerland. Contract options are scheduled for presentation by February 2012, whereupon the package will be proposed to the Swiss national parliament as part of the 2012 weapons plan. The catch is that the buy requires about CHF 600 million in savings from elsewhere. The governmentâ€™s strategy is apparently to tie that savings program to the fighter order if a referendum is required, and even the proposal isnâ€™t expected before 2013. This means that itâ€™s likely to be 2014 before Saab has a production contract they can rely on.

There's nothing particularly shocking about a public referendum in Switzerland. Swiss society is so small, that it's feasible to practice direct-democracy with every major policy decision.

Though, why are they paying $3.01 billion for 22 Gripens? At the prices that were quoted to India's MMRCA tender, the Swiss should get at least 66, realistically 44 if you take into account background support-infrastructure costs that typically amount to 1/3 of the tender.

Switzerland has chosen the Saab Gripen as its new fighter aircraft, in preference to the Dassault Rafale or Eurofighter Typhoon. Defense Minister Ueli Maurier told journalists that the Swedish package including 22 jets isworth $3.4 billion.The Gripen is not the highest performing of the three contenders, he said, but it meets the Swiss requirement and offers the lowest acquisition and maintenance costs. Swiss media earlier reported that the Eurofighter offer was about $4.3 billion, and the Rafale in the middle range between the Typhoon and the Gripen.

Published: 1 Dec 11 15:58 CET |
If the Swiss purchase of the fighter Jas Gripen goes through, Sweden should develop ten new advanced E/F model "Super-Jas", according to a proposal by the Riksdag's defense committee.

â€œYes, once we have taken the decision in the committee on December 15th,â€ said Cecilia Widegren, Moderate MP and deputy head of the Riksdagâ€™s Defense Committee, to news agency TT.

A Defense committee majority has reached an agreement that Sweden should develop up to ten of the E/F model Jas if â€œBrazil or any other countryâ€ places an order for the fighter jet.

The proposition will be officially agreed by the Riksdag in two weeks time.

This would mean that the government in 2012 could be deciding on a development of up to ten aircraft, as long as the Swiss deal goes though.

However, the Greens want Sweden to upgrade the existing Gripen fighter jet and argue that the new E/F model would be too expensive.

The party spokesperson on defense, Peter RÃ¥dberg, said that it is very likely that it is a Super-Jas model that Switzerland wants, which would influence Swedenâ€™s decision on future air defense.

He added that Switzerland is paying 22 billion kronor for the deal ($3.29 billion), which would indicate a billion kronor per fighter â€“ a price tag significantly higher than for the existing planes.

â€œThis is a lot more expensive. Previous calculations have estimated about half a billion per aircraft, so thereâ€™s a lot that indicate it is a E/F model that they are asking for, but we will see. We donâ€™t have all the information at the moment,â€ he said to TT.

However, the Social Democrats are positive to the development of the ten super fighters, if the Swiss deal goes through.

â€œGetting this order at this point is good for Sweden. It is important both for the armed forces and for Sweden as a nation. It shows that Jas Gripen is a fighter and a defense system that has earned international respect,â€ said Social Democrat Peter Hultqvist, head of the Riksdag Committee on Defense, to TT.

Saab had prepared quotes of both a C/D and E/F version of the Jas Gripen fighter jet for Switzerland. At the Swiss press conference on Wednesday it was the E/F version that was discussed, according to TT.

On Thursday there were speculations in Swedish media as to what would happen if Switzerland later were to change its mind.

"All I can say is that the Swiss government yesterday chose Gripen after reviewing a number of other alternative possibilities for Switzerland," defense minister Sten Tolgfors said to TT on Thursday.

"It is my firm belief that they are doing so because they are convinced that this is the best choice for Switzerland and that this choice will be anchored in the political system, so I choose not to speculate about that," he said.

STOCKHOLM â€” The head of Swedish defense group Saab said May 25 that his cellphone was bugged repeatedly during negotiations with Switzerland over Saabâ€™s sale of 22 Gripen fighter jets.

â€œI am closely watched and I know that my cellphone has been bugged on several occasions. Text messages have also been sent from my cellphone, in both Swedish and English, on various occasions and to various contacts,â€ Saab chief executive Haakan Buskhe told Swedenâ€™s Svenska Dagbladet in an interview.

He suggested he was a target of industrial espionage but did not identify by name the people or companies which may have been behind the action.

â€œYouâ€™re monitored, one way or another,â€ he said, adding: â€œSure, Iâ€™ve been surprised when I see how our competitors work.â€

Switzerlandâ€™s Federal Council announced in November its decision to purchase 22 Gripen for an estimated 3.1 billion francs ($3.27 billion, 2.6 billion euros), reportedly the cheapest of three offers.

Dassaultâ€™s Rafale and the Eurofighter, produced by the European EADS consortium, were the other bidders.

No contract has been signed, and in February Dassault reportedly made a counteroffer undercutting the Swedish deal, prompting Saab to review its price.

Since then, several Swiss media outlets have revealed classified documents questioning the technical capabilities of the Gripen.

The Swiss defense ministry has repeatedly stood by its choice of Gripen, but in April the federal government delayed the purchase until 2020.

A Swiss parliamentary commission is currently examining whether the governmentâ€™s selection process was conducted properly, and a referendum on the purchase is expected.

Buskhe said he was â€œnot concernedâ€ about those outcomes.

â€œI know Switzerland has the ability to evaluate the various alternatives ... I donâ€™t think it would be right for Saab to launch a political campaign in another country,â€ he said.

Gripen is already in service with the Swedish, Czech, Hungarian, South African and Thai air forces, and negotiations are underway in Brazil, Denmark and India.

GENEVA, Switzerland â€” Switzerland is to press ahead with its controversial purchase of 22 Saab Gripen fighter jets despite a highly critical parliamentary report into the deal released on Aug. 21.

The parliamentary security commission found that the â€œchoice of jet made by the Federal Council carries the most risks: technically, commercially, financially and in respect of the delivery dateâ€, Swiss news agency ATS reported.

The members of the commission â€” appointed by the Swiss parliamentâ€™s National Council of representatives â€” nonetheless voted 16 to 9 against demanding that ministers put a halt to the deal.

Defense minister Ueli Maurer, who is in charge of the dossier, said that negotiations with Sweden were â€œreaching their conclusion (and) will allow us to resolve any outstanding issues.â€

The purchase price â€” 3.126 billion francs (2.6 million euros, $3.25 billion) â€” was guaranteed not to change, he said, adding that the Gripen â€œwas the cheapestâ€ option compared with the French Dassault Rafale and the EADS Eurofighter.

Opponents of the Gripen purchase announced that they would seek to hold a national referendum on the deal.

GENEVA â€” Switzerland has agreed to details of its planned purchase of 22 fighter jets from Sweden, despite a critical parliamentary report on the deal, the countriesâ€™ defense ministries said Aug. 25.

A Swiss government statement said an agreement in principle had been reached between its weapons procurement agency armasuisse and Swedenâ€™s FXM agency on the acquisition of the Saab Gripen warplanes.

Final details of specifications, delivery dates, prices, equipment and infrastructure had been settled pending a final green light from Bern, it said.

The deal forms part of a larger order for Gripens to be shared with Sweden, which Stockholm said would help to keep costs down.

The Swiss parliamentary security commission said Aug. 21 that the â€œchoice of jet made by the Federal Council carries the most risks: technically, commercially, financially and in respect of the delivery date,â€ Swiss news agency ATS reported.

The members of the commission nonetheless voted 16-9 against demanding that ministers put a halt to the deal.

Defence Minister Ueli Maurer said that the Gripen â€œwas the cheapestâ€ option compared with the French Dassault Rafale and the EADS Eurofighter and its purchase price â€” 3.126 billion francs (2.6 million euros, $3.25 billion) â€”was guaranteed not to change.

Opponents of the Gripen purchase, which still has to be approved by the federal parliament, have said that they would seek to hold a national referendum on the deal.

The Gripens, which would replace the Swiss Air Forceâ€™s aging U.S.-built F-5 Tigers, are of a more advanced model still under development and will not be available before 2018, according to Bern.

For its part the Swedish government plans to buy 40 to 60 new Gripens over the next decade at a cost of 2 billion kronor (242 million euros).

Contract terms. The Swiss government reveals the details of their Gripen deal. Their 22 planes will all be single-seat JAS-39Es, delivered from 2018-2021 at a firm-fixed-price cost of CHF 3.126billion (currently $3.27 billion). That total is guaranteed by the Swedish government, and includes mission planning systems, initial spares and support, training, and certification.

As a bridging step, Switzerland will replace its F-5 fleet beginning in 2016 with 11 rented Gripens (8 JAS-39Cs, 3 JAS-39Ds) from Sweden, on an initial 5-year lease. They will fly beside Switzerlandâ€™s 33 F/A-18C/D Hornets, and their CHF 44 million per year cost is CHF 10 million more than the current cost of maintaining the F-5E/F fleet.

This deal will now go to the Swiss Parliament, with the aim of passing the PA12 budget, as well as a specific law covering the Gripen purchase, by November 2012. The first half of 2013 will involve further legislative reviews and reports, and if thereâ€™s no referendum, the goal is a formal contract in autumn 2013. There will almost certainly be a referendum, of course, which would push a contract signing out to mid-2014 â€“ if and when the referendum campaign against the fighter purchase fails. That signing would be accompanied by a A CHF 300 million advance payment.

IMO, Switzerland is a neutral country but want jets for their own needs in case the Soviets decided to invade regardless of the neutral status. Hitler did not give too hoots about Belgium's neutrality. Obviously the Soviets are gone. But now, this purchase may mean a lot about maintaining jobs in the military while not losing out on precious experience if they disband their Air Force. So, a minimal force of 2 modern squadrons and 3 relatively old Hornet squadrons from the previous 8 squadrons, mostly consisting of F-5s. Their Hornets are getting old.